Asda has reported a 5.9% year-on-year drop in revenue for Q1 2025, with like-for-like sales down 3.1% (adjusted for Easter), but signs of recovery are emerging as the supermarket giant sharpens its pricing edge and boosts product availability.
Despite softer top-line numbers, Asda is delivering strategic progress across key areas. Notably, the grocer has rolled out its new “Asda Price” to over 10,000 products—establishing a consistent 3% to 6% price gap over traditional full-service supermarkets.
Value-led turnaround gains momentum
Executive Chairman Allan Leighton called out “green shoots” in sales performance, while reaffirming Asda’s goal to become the UK’s top value-led full-service grocer.
“We’re making good progress… and customers are seeing the difference in their pockets,” said Leighton.
Backed by independent benchmarks, Asda’s price position is clear. The supermarket has topped the Which? Big Shop ranking every month in 2025, and has won The Grocer 33 comparison nine times, more than double any other supermarket this year.
Availability and satisfaction on the rise
One standout improvement this quarter is product availability, which rose from 90% in January to 95% by March. This, combined with extended store hours and tighter supply chain execution, has also driven a lift in customer satisfaction. Asda’s improvements were validated externally, with three ‘Store of the Week’ wins from The Grocer since February.
Express and George outperform the market
George at Asda continued its strong run, with LFL sales up 3.5%, outperforming the broader fashion market by 2% in volume terms. A summer campaign fronted by supermodel Yasmin Le Bon has added further brand momentum.
Meanwhile, Asda Express—fueled by the integration of 469 sites from The Co-op and EG Group—delivered 6.0% LFL growth, outperforming the fuel market in volume. The brand plans to further expand its Express estate with new urban and residential store openings this year.
Colleague investment reaches £80m
Asda also reinforced its commitment to staff, announcing an £80 million investment in pay and benefits. From July, enhanced family leave policies will launch alongside a recently increased 15% colleague discount.
CFO: “Clear strategy, strong balance sheet”
Chief Financial Officer Michael Gleeson said Asda’s value-first strategy is underpinned by disciplined cash management and a robust financial plan.
“We are beginning to see customers respond positively,” Gleeson noted.
While like-for-like sales remain down, the 1.1% improvement over Q4 2024 and further gains in May suggest a possible turnaround in progress. With customers tightening budgets, Asda’s ability to maintain a growing price gap could prove pivotal in the months ahead.
